N.C. Insurance Coalition Pushes For ‘Good Driver Discount Bill’
By Molly Parker, Star-News, Wilmington, N.C. | |
McClatchy-Tribune Information Services |
The bill, however, has split the industry and those who oppose it say it could lead to higher rates.
Passing the bill would allow drivers to take advantage of popular discount programs offered by companies such as
What the proposal does is give insurance companies the ability to opt out of the
By opting out, a company could have more leeway in assigning good driver discounts and overlooking minor wrecks and speeding tickets that now come with price hikes under the
"Most of the programs you see advertised on television are not available here," Stoller said.
The measure is expected to get a hearing in the
But not everyone is on board. A separate group of insurers -- dubbed the LowRatesNC.com coalition -- called it "radical legislation" that would lead to rate hikes for drivers that are currently rank among the lowest in the country.
"Big insurers pushing to dismantle
That organization includes a host of companies and organizations including
Currently all 157 of
Insurance Commissioner
Goodwin spokeswoman
"They fail to mention that the SDIP actually limits how much an insurer can raise your premium if you have points," Hall said in an email. "So, yes, your insurer can raise your rates if you've violated traffic laws, but at most by the increases spelled out in the plan. If this proposal becomes law, there will be no limit on how much an insurer can charge you if you have points on your driving record."
"In short," she said, "insurers do not need a change in law to offer discounts or lower rates. They only need a change to charge you more.
If the bill becomes law and rates do go up, certain areas could be inversely impacted. That list could include
But Stoller insists <location idsrc="xmltag.org" value="LS/us.nc">North Carolina drivers are missing out. The FAIR NC coalition notes in its literature that the average increase of insurance premiums when a
It lists what it called a "true story" of an elderly woman in
"NC's mandatory point system requires rates go up when you have an accident or get a ticket -- no matter how good your driving record," the literature reads.
Stoller called the changes proposed in the bill "simple, straight forward and minor."
Metro desk: 343-2384
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